Oil prices spiked early on Wednesday morning in Asia as President Trump announced a “total and complete blockade of all sanctioned oil tankers going into, and out of, Venezuela."  At the time of writing, West Texas Intermediate crude futures had climbed 1.25% on the news to trade at $55.96, reflecting heightened market risk premiums amid fears that more Venezuelan supply will be taken offline. In the same post, Trump labeled the Venezuelan government a “foreign terrorist organization”, justifying the move as part of an effort…

The global oil market looks well-supplied at the end of the year, with output sufficient to absorb a supply disruption in Venezuela, the world’s biggest crude resource holder. The escalating U.S.-Venezuela tensions in recent weeks, a tanker seizure, and further U.S. sanctions squeezes on Nicolas Maduro and his allies, including companies operating tankers, have cut Venezuela’s production to a seven-month low.   The International Energy Agency (IEA) estimated Venezuela’s oil supply at 860,000 barrels per day (bpd) in November,…